Cross-National Variation in the Effect of Education-Job Mismatch on Earnings: Educational and Labor Market Institutions

• In Event: Higher Education and Institutional Comparisons Across Countries

Abstract

This study aimed to investigate the impact of cross-national variation in the impact of the education-job mismatch on earning penalties, considering educational and labor market institutions. The results of multi-level modeling, which used data from PIAAC on 40,524 wage workers in 17 countries, show that vertical (or qualification) and horizontal (or field of study) mismatches affect wage penalties. Moreover, in countries with a stronger school tracking system, horizontal and vertical mismatches worsen wage penalties. Countries with more vocational education, active labor market initiatives, and employment protection for temporary workers had a smaller effect. It implies that educational and labor market institutional approaches may influence the extent of education-job mismatch and its impact on labor market outcomes.

Author

• Seong Ji Jeong, Pennsylvania State University